Foundation

Slowing the Growth of Medicare

In the debate, Governor John Kasich promoted his plan to slow the growth of Medicare spending. Under the Congressional Budget Office's latest budget data, the federal government spent $639 billion on Medicare in FY 2015. By 2025, expenditures are projected to grow by 7 percent per year, and will reach $1.22 trillion.

Kasich's plan would slow the growth starting in FY 2019. Through FY 2025, outlays would increase by 6 percent per year, reaching $1.06 trillion. His website provides only the following details of how the slow down would be achieved: "Increasing care coordination through Medicare Advantage, as well as other changes like reforming payment practices to increase value and quality."

If the reforms are implemented and maintained -- as we just saw yet again with the Bipartisan Budget Act, lawmakers do not long abide by budget restraints -- spending would be reduced by $101 billion through FY 2021, and an additional $427 billion through 2025. Compared to CBO's baseline, outlays would be 4 percent lower over the first several years, and 13 percent lower in 2025.

NTU Foundation

Our Mission

Founded in 1973, National Taxpayers Union Foundation (NTUF) is a non-partisan research and educational organization dedicated to showing Americans how taxes, government spending, and regulations affect them. Through difference-making data, analysis, and commentary, we empower citizens to engage in the critical policy debates of our time – and hold elected officials accountable.